UNESCO Faces Critical Crossroads as New Director is Chosen amid Looming Funding Shortfall Following U.S. Exit

 UNESCO Faces Critical Crossroads as New Director is Chosen amid Looming Funding Shortfall Following U.S. Exit

Paris, October 6, 2025

UNESCO, the United Nations agency tasked with promoting education, science, culture, and heritage, is selecting its next Director-General this week—but the incoming leader will inherit more than just ceremonial duties. With the United States preparing to withdraw from the organization by the end of 2026, UNESCO faces a substantial budget gap at a time when global demand for its work is intensifying.

The Leadership Race

The executive board of UNESCO—comprising 58 of its nearly 200 member states—is in the process of recommending a new head from among two contenders:

Khaled el-Anani, a 54-year-old Egyptian antiquities expert and former minister of tourism and antiquities. Backed by both the Arab League and the African Union, El-Anani is seen by supporters as a candidate who could bring renewed focus on cultural heritage, religious tolerance, and perhaps mark the first Arab leadership of UNESCO.

Firmin Édouard Matoko, 69, a Congolese economist and long-time UNESCO official with experience in education programs in refugee camps and post-conflict settings. He is pushing for depoliticizing UNESCO’s work, strengthening educational initiatives in developing regions, and implementing financial discipline.

The executive board’s vote took place recently, and the winning candidate will be officially confirmed by the full general assembly next month. Reports indicate El-Anani has secured the executive board’s endorsement by a wide margin.

A Budget Gap Unavoidable

The chosen director will assume leadership at a very difficult moment. The U.S. government has announced that it will withdraw from UNESCO by December 2026, citing concerns over what it deems the agency’s ideological leanings and its positions concerning Israel and Palestine.

Currently, the U.S. contributes around 8% of UNESCO’s total budget. Once the withdrawal is fully implemented, that funding stream will disappear, leaving a significant shortfall. UNESCO has in recent years sought to diversify its revenue streams. Outgoing Director-General Audrey Azoulay has pushed for increased contributions from non-traditional donors and greater private sector involvement.

What’s at Stake

The funding gap raises serious challenges for UNESCO’s key programs:

World Heritage Sites: Conservation and protection efforts may be threatened, especially in regions heavily dependent on external funding.

Education Initiatives: Programs focusing on girls’ education, refugee camps, and developing regions risk scaling back or delaying expansion.

Cultural and Scientific Projects: UNESCO’s cultural diplomacy, scientific research, and heritage preservation efforts—all central to its mission—may require cuts or re-prioritization.

Possible Responses and Strategies

The new Director-General, whoever they are, will likely need to:

Reform internal finances by reducing bureaucracy, streamlining operations, and possibly cutting lower-impact programs.

Strengthen partnerships with non-U.S. member states, especially emerging powers, regional blocs, and BRICS countries, to replace lost funds.

Increase private funding by seeking support from foundations, corporate sponsors, and other philanthropic organizations.

Engage diplomatically with the U.S., attempting to address criticisms and perhaps laying groundwork for a return or partial involvement in the future.

The Bigger Picture

UNESCO’s predicament reflects broader tensions in global multilateralism. Agencies formed in the post-World War II era are being squeezed by shifting political priorities, rising skepticism of international institutions, and persistent funding shortages. The U.S. exit from UNESCO marks another in a series of recent withdrawals from international organizations under nationalist foreign policy approaches.

At the same time, UNESCO remains central to addressing global challenges: preserving heritage in conflict zones, educating displaced populations, and supporting scientific research against threats like climate change and biodiversity loss. The capacity of the next director to navigate both political headwinds and financial scarcity could determine whether UNESCO maintains its global relevance or begins to diminish in scope.

Conclusion

As the executive board prepares to formalize the selection of Khaled El-Anany (or potentially confirm an alternate) in the coming weeks, UNESCO stands at a pivotal moment. The budget challenges brought by the U.S. exit can’t be ignored. The new leadership will need vision, fiscal discipline, and diplomatic skill to ensure UNESCO continues to function—not merely as a symbolic global institution, but as an effective driver of education, culture, science, and heritage in an increasingly divided world.